Russian Economy General News: #2

kvs wrote:

sepheronx wrote:I was reading that Russian net profits in manufacturing is down by 2.5% in september. Question is, wouldnt profits be up due to lower value of ruble (cheaper to produce) and increased demand for import substitution? Agriculture saw the biggest profit increase in Russia.

Edit: tr1 or anyone else with a better grasp of Russian than me, can you please tell me if what is saying in this link: http://www.finmarket.ru/news/3873989.

Is it saying net profit of manufacturing dropped by 2.5% and construction as 25%? Cause if so, they still have a profit, but less than before.

Снижение прибыли было зафиксировано, в частности, в строительстве на 25,3% - на 41,9 млрд руб., в транспорте и связи - на 22,6% (491,4 млрд руб.), в обрабатывающих отраслях - на 2,5% (1 трлн 156,1 млрд руб.).

The profit level of the construction industry fell by 25.3% not that they are now all in the red.  The drop for manufacturing is 2.5%.   We are in
a global recession right now and that is why the oil price has dropped.   Of course the tendency will be to assess the these statistics as
"proof" of the effect of the sanctions.

В январе-сентябре 2014 года сальдированный финансовый результат (прибыль минус убыток) организаций (без субъектов малого предпринимательства, банков, страховых организаций и бюджетных учреждений) в действующих ценах составил 4 трлн 799,9 млрд рублей (40,0 тыс. организаций получили прибыль в размере 6 трлн 516,9 млрд рублей, 17,3 тыс. организаций имели убыток на сумму 1 трлн 717 млрд рублей), свидетельствуют оперативные данные Федеральной службы госстатистики (Росстата).

В январе-сентябре 2013 года сальдированный финансовый результат составил 5 трлн 267,5 млрд рублей. Таким образом, за 9 месяцев прибыль организаций сократилась на 8,9%.

The net profit (all enterprises making a profit minus all enterprises making a loss) went from 5.2675 trillion rubles to 4.7999 trillion rubles over the January to
September period compared to last year, a drop of 8.9%.

sepheronx wrote:If the Ruble is a floating currency, then why does it fluctuate over oil prices? Ruble is as of right now 47/usd. That said, the economics minister said it cab eat away at gdp by 1.5% but that makes little sense as a lower value means cheaper production. Major complaint though is aimed at the cost of goods (inflation) and debt repayment.

Belarus is pissed because Russia is doing inspections of eu meats being transfered through Russia to Kazakhstan. I suppose dumb ass lukashenko should do a better job at stopping meat imports from eu to Russia then.

http://en.itar-tass.com/economy/763819

Turkey plans on increasing bilateral trade with Russia to $100B.

Now, how can Russia fight growing inflation during this time?

kvs wrote:

sepheronx wrote:If the Ruble is a floating currency, then why does it fluctuate over oil prices? Ruble is as of right now 47/usd. That said, the economics minister said it cab eat away at gdp by 1.5% but that makes little sense as a lower value means cheaper production. Major complaint though is aimed at the cost of goods (inflation) and debt repayment.

Belarus is pissed because Russia is doing inspections of eu meats being transfered through Russia to Kazakhstan. I suppose dumb ass lukashenko should do a better job at stopping meat imports from eu to Russia then.

http://en.itar-tass.com/economy/763819

Turkey plans on increasing bilateral trade with Russia to $100B.

Now, how can Russia fight growing inflation during this time?

The ruble exchange is determined by market perceptions.  The market believes Russia is a single commodity economy.

sepheronx wrote:

kvs wrote:

sepheronx wrote:If the Ruble is a floating currency, then why does it fluctuate over oil prices? Ruble is as of right now 47/usd. That said, the economics minister said it cab eat away at gdp by 1.5% but that makes little sense as a lower value means cheaper production. Major complaint though is aimed at the cost of goods (inflation) and debt repayment.

Belarus is pissed because Russia is doing inspections of eu meats being transfered through Russia to Kazakhstan. I suppose dumb ass lukashenko should do a better job at stopping meat imports from eu to Russia then.

http://en.itar-tass.com/economy/763819

Turkey plans on increasing bilateral trade with Russia to $100B.

Now, how can Russia fight growing inflation during this time?

The ruble exchange is determined by market perceptions.  The market believes Russia is a single commodity economy.

Thats funny because Gas prices are never mentioned and Gas is probably Russias larger export over Oil. Same thing with mining minerals or military production, etc.

kvs wrote:

sepheronx wrote:If the Ruble is a floating currency, then why does it fluctuate over oil prices? Ruble is as of right now 47/usd. That said, the economics minister said it cab eat away at gdp by 1.5% but that makes little sense as a lower value means cheaper production. Major complaint though is aimed at the cost of goods (inflation) and debt repayment.

Belarus is pissed because Russia is doing inspections of eu meats being transfered through Russia to Kazakhstan. I suppose dumb ass lukashenko should do a better job at stopping meat imports from eu to Russia then.

http://en.itar-tass.com/economy/763819

Turkey plans on increasing bilateral trade with Russia to $100B.

Now, how can Russia fight growing inflation during this time?

The ruble exchange is determined by market perceptions.  The market believes Russia is a single commodity economy.

Vladimir79 wrote:F'ing Saudis screwed us today...